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Annex-III to Directors’ Report

PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT


OF THE BOARD OF DIRECTORS) RULES, 1988:
A. CONSERVATION OF ENERGY:
a) Energy conservation measures taken:
Some of the important energy conservation measures taken during the year 2009-2010 in different areas are as
under:
ENERGY AUDITS
During 2009-10, 107 energy audits in the areas of auxiliary power consumption, water balance, cooling water system,
thermal insulation, compressed air, coal handling plant, MGR, milling system, air conditioning, ash handling system,
GT compressors, GT open cycle efficiency, WHRB performance, lighting etc. were carried out at different stations of
the company.
Till now 255 executives of NTPC have passed Energy Auditors Examination of Bureau of Energy Efficiency to become
Certified Energy Auditors / Managers.
AUXILIARY POWER CONSUMPTION
Replacement of inefficient BFP cartridges and attending BFP recirculation valves at Dadri, Rihand, Singrauli, Unchahar,
Kahalgaon, Korba, Vindhyachal, Badarpur etc., Application of efficiency improvement coating on cooling water
pump internals at Talcher Thermal & Kawas, Vapour Absorption System for control room airconditioning at Unchahar,
Attending passing of LPBFP recirculation valve at Dadri gas, Installation of FRP blades in HVAC cooling towers and fin
fan Coolers at Kawas, Optimization of operation of CW pumps, ARCW and clarified water pumps & Cooling Tower
Fans at Anta, Auraiya, Unchahar, Farakka, Korba, Vindhyachal, Maintaining optimum DP across Feed Regulating Station
at Kahalgaon, Korba, Singrauli and Vindhyachal, Optimization of HP/LP water pumps at Dadri coal, Singrauli and
Rihand, External cleaning of Fin Fan coolers by steam jetting at Kawas, Optimization of AC compressors and airwasher
units at Kahalgaon, Talcher Thermal, Simhadri and Anta, Optimization of air compressors at Tanda, Vindhyachal and
Simhadri.
LIGHTING
Installation of timer switches in plant and township lighting at Anta and Kahalgaon, Replacement of conventional GLS
lamps and conventional FTLs with CFLs at Singrauli, Unchahar, Vindhyachal, Ramagundam, Kayamkulam, Kawas and
Gandhar.
HEAT ENERGY
New installation of Online condenser tube cleaning system at Rihand, New installation of Online water washing
system for GT compressors at Kayamkulam, Repair of Thermal Insulation and cladding at Unchahar and Kayamkulam,
Optimization of ejector steam pressure at Vindhyachal.
Arresting passing in HP heaters at Ramagundam, Improving condenser vacuum by tube cleaning, arresting air leakages
etc at Anta, Talcher Thermal and Gandhar, Cleaning of Boiler with ammonia at Auraiya.
DM WATER
Reuse of uncontaminated SWAS drains at various stations.
MISCELLANEOUS WATER
Reuse of water from ash pond at various stations, Reuse of clarified return water and raw water from coal settling
pond at various stations

34th Annual Report 2009-2010 89


b) Additional investments and proposals for reduction in consumption of energy:
Provision of Rs.1068 lacs has been kept in BE 2010-11 for different energy conservation schemes like:
- On-Line Energy Management System
- Vapor absorption system for Air Conditioning
- Up gradation of Boiler Feed Pumps
- Energy efficient devices in lighting

c) Impact of measures taken for energy conservation:


Savings achieved during 2009-2010 on account of specific efforts for energy conservation:-

S.No. Area/Activities Savings


EnergyUnit Qty. ofunits Rs. (Lacs)
1 Electrical MU 93.78 1542.45
2.a Heat Energy (equivalent MT of coal) MT 72747 894.68
2.b Heat Energy (equivalent MCM of Gas) MCM 2.55 177.67
2.c Heat Energy (equivalent MT of Naptha) KL 414 146.66
3.a D.M. Water MT 22920 9.15
3.b Miscellaneous Water M.Cu M 16.38 159.83
4 LDO KL 86 29.53
Grand Total 2959.97
Savings achieved during 2008-09: Rs: 498.02 Million
B. Technol
ogyAbsorption:
Efforts made towards technology as per Form –B (Form-B enclosed)
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
Activities relating to export initiative taken to increase export, development of new export markets for products and
services and export plan:

TotalForeign Exchange Used/Earned Rs.(Mil


lion)
1. Foreign Exchange Outgo
a) Value of Imports calculated on CIF basis:
Capital Goods 8970
Spare Parts 1393
b) Expenditure:
Professional and Consultancy Charges 53
Interest 3588
Others 188
2. Foreign Exchange Earned
Consultancy 8
Interest -
Others 1

90 34th Annual Report 2009-2010


FORM B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION OF TECHNOLOGY
1.0 Specific areas in which NETRA activities have been carried out during 2009 - 10:
1. MOU Proj ects with MoP for 2009 –10 Compl eted : Technical Specification of Centralized Ammonia based
Flue Gas Conditioning System (with Heavy Water Board, Mumbai);Setup Advance Computing Centre : Phase-I;
Design of integrated biodiesel pilot unit for using 80% energy from biofruit instead of existing 15%;Optimization
of process parameter for bench scale PSA system for CO2 separation from flue gas (with IIT Mumbai, IIP
Dehradun, NEERI Nagpur, CSMRI Bhavnagar);Lab scale design & dev of automated LTSH/eco tube surface
inspection system;Feasibility study of producing methane from raw water, as a supplemental fuel to boiler
(with IIT Delhi);ECBC 2007 compliance of new building;Lab scale development of technique for online
monitoring of colloidal silica in steam water cycle
2. Devel opmentalProj ects undertaken byNETRA:
A. Cl imate Change: Study of CO2 capture technology (With IIT Guwahati);Study of CO2 storage technology
(With IIT Kharagpur);PSA based CO2 capture technology (With IIT Mumbai, IIP Dehradun, NEERI Nagpur,
CSMRI Bhavnagar)
B. New & Renewabl e Energy: Preparation of Technical Specifications for a demonstration plant for Solar air
Conditioning;Preparation of DPR for setting up of ‘ 1 MW Solar Thermal Demonstration Plant;Designing of
Integrated self sustaining biodiesel plant
C. Efficiency Improvement and Cost reduction: Lab Testing of 5 KW MALAE Cycle pilot plant (With UICT,
Mumbai);Studies on Flue Gas Heat Recovery from power plant;CFD Modeling of 210 MW Boiler (With NCL
Pune);Field trials of Robotic crawler for boiler tube thickness;Technical Feasibility Report for Plasma coal
burners for Oil Gun Replacement;Technical Feasibility Report for Heat Pipe based Air Pre-Heater;Motor
winding modification specifications suitable for VFD retrofitting;Development of nano coating material for
HV insulators (with IIT Roorkee);etc.
3. Scientific Support to NTPC Stations:
NETRA continued to provide scientific support to NTPC stations and other utilities such as: Studies on Corrosion
Induced damages to RCC structures of cooling towers of Simhadri (Stage 1);Change of specifications of PA fan
blades of coastal power stations;11 boilers were chemically cleaned to improve the heat transfer;Environmental
Appraisal of 20 stations have been carried out and corrective actions are being taken by the stations based on
the appraisal;Health assessment of plant components like Platen super heater tubes of Ramagundam, generator
rotor, main steam pipeline, hot gas path components of gas stations, etc;failure investigations such as LP turbine
blade of Tanda, condenser tubes of Badarpur, Condenser tubes of Tarapore Atomic Power station, etc;repair
of critical electronic card;improvement in heat transfer of HRSGs of gas stations;Development of guidelines for
CW system operation & monitoring and cleaning of sulphuric acid tanks;development of chemical treatment
programs for Tanda, Jhajjar, Talcher Kaniha, Talcher Thermal, etc;Design of cathodic protection system for
condenser water boxes at Badarpur;Condition monitoring of 500 HV transformers by DGA, 1300 rotating
equipment by wear debris analysis, ion exchange resins of 18 stations;etc
4. Scientific Support to Other Util ities:
Scientific services provided to more than 60 other utilities such as Panipat, Kota Thermal, Lehra Mohabat,
Faridabad, JPL (Raigarh), Neyvelli, IPGCL, DVC, PGCIL. NHPC, etc
5. Works under Patent:
Three (3) Patents namely: 1 - Integrated approach for biodiesel preparation utilizing biofruit (Pongamia fruit)
utilizing 83% energy instead of existing 15%”;2 –Sensor for tube inspection and 3 - Method and Apparatus for
efficient heat integration;have been filed by NETRA in 2009 –10
2.0 Benefits derived as aresul t ofabove Research & Technol ogyDevel opment:
NETRA activities as carried out have helped in increasing the availability, reliability and efficiency of the stations.
Chemical treatment and corrosion control measures suggested is helping the stations in improving the efficiency,
availability and life of various heat exchangers/cooling towers. Techniques developed by NETRA are implemented
at stations, which are enhancing the life of boiler & turbine components.
The timely and scientific failure analysis of various components helped in identifying the cause of failure and thus
providing necessary input for taking corrective action in preventing re-occurrence of similar failures thereby increasing
the availability of power plant equipment.

34th Annual Report 2009-2010 91


Studies on CO2 fixation/utilization;solar thermal;biofuels will result into development of technologies for reduction
in the impact on climate change and technologies for affordable renewable energy sources. Development of
technologies for efficiency improvement will help in reducing cost of generation
3.0 FUTURE PLANS
Devel opmentalProj ects pl anned to be taken up:
A. Cl imate Change: Feasibility study of CO2 fixation for development of Product/EOR;Feasibility report for setting
up of 100 Kg/day pilot plant of microalgae based CO2 capture technology;NIT for setting up of pressure swing
adsorption (PSA) based CO2 capture pilot plant 100 Kg/hr. flue gas capacity;Feasibility studies on 1.2 T/day
CO2 fixation by aqueous carbonation of fly ash at Ramagundam
B. New & Renewabl e Energy: Award for solar heating ventilation and air-conditioning (HVAC) system;TS for 1 MW
solar thermal pilot plant;Commissioning of integrated biodiesel pilot plant to produce energy for existing biodiesel
plant at Dadri;Set-up & commissioning of solar radiation station at suitable locations;Lab scale demo of methane
production from raw water of Badarpur (with IIT Delhi);Experimental set up of Thermoelectric Generation
C. EfficiencyImprovement & Cost reduction: Installation of a demonstration pilot plant at Dadri Thermal for the
proof of concept of the theoretical model developed for extraction of moisture from flue gas (With IIT Delhi);
Completion of integrated Polarization Depolarization Current – Recovery Voltage (PDC-RV) measurement
apparatus for Insulation condition monitoring of Transformers;Preparation of TS for 100 TR Flue gas heat recovery
–AC plant;Field trials of Robotic based inspection system at one station;PR for heat pipe based air-preheater
pilot plant;Finalization of Technical Specifications for 2nd Phase Advanced computing Center
4.0 Expenditure on R&D:
S. No. Description Expenditure in (Rs./Mil
lions)
2009 - 2010 2008 - 2009
a) Capital 14 12
b) Recurring 206 81
c) Total 220 93
d) Total R&D expenditure as a percentage of total turnover 0.0475% 0.0222%
5.0 Technol ogyAbsorption, Adaptation and Innovation
Particulars of some of the important technology imported during last five (5) years are as follows:
S.No. Technol ogy Year Stations
1. Super critical Technology with 256 Kg/cm2 Steam Pressure 2008 Being Implemented in Barh-II and
and 568/595 C MS/RH steam temperature is being adopted further Being implemented in 11 units
for improvement in thermal efficiency and reduced emission (in Mauda, Sholapur, Meja, Nabinagar
of green house gasses. and Raghunathpur plant) through bulk
tendering mechanism.
2 Feasibility of IGCC (Integrated Gasification Combined Cycle) 2010 -
established for high ash Indian coal. Further efforts are on to
take ahead the work already done to implement IGCC
technology demonstration plant of about 100 MW capacity.
3 Communicable Numerical Relay Technology (on IEC 618500) 2009 Implemented at Dadri-II, Korba-III &
along with Networking Systems introduced in 33 KV/11KV IGSTPP, Simhadri-II. Being Implemented
/6.6 KV/3.3 KV and LV System in all ongoing projects.
4 765 KV Switchyard & associated equipments including 2005 Implemented at Sipat
24KV/ 765KV Generator Step up (GSU) Trans-former.
5 Switchyard Control & Data Acquisition (SCADA) System 2005 - do -
based on universal protocol IEC 61850.
6 Boiler Flame Viewing Camera 2009 Implemented in Kahagaon and Sipat-II
For and on behalf of the Board of Directors

Place : New Delhi (R.S. Sharma)


Dated : August 04, 2010 Chairman & Managing Director

92 34th Annual Report 2009-2010


Annex-V to Directors’ Report
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956 RELATING
TO SUBSIDIARY COMPANIES
NAME OF THE PIPAVAV NTPC NTPC VIDYUT NTPC HYDRO KANTI BIJLEE BHARTIYA
SUBSIDIARY POWER ELECTRIC VYAPAR LTD. UTPADAN RAIL BIJLEE
DEVELOPMENT SUPPLY NIGAM LTD. NIGAM COMPANY
COMPANY LTD. COMPANY LTD. LIMITED LIMITED
1. Financial year of the
Subsidiary ended on March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010
2. Date from which they December 20, August 21, November 1, December 12, September 6, November 22,
became Subsidiary 2001 2002 2002 2002 2006 2007
3. Share of the subsidiary held by
the company as on March 31,
2010
a) Number & face value 3,75,000 equity 80,910 equity 2,00,00,000 10,07,99,040 5,71,51,000 29,60,00,000
shares of shares of equity shares equity shares equity shares equity shares
Rs. 10/- each Rs. 10/- each of Rs. 10/- of Rs. 10/- of Rs 10/- of Rs 10/-
each each each each
b) Extent of holding 100% 100% 100% 100% 64.57% 74%
4. The net aggregate amount
of the subsidiary companies
Profit/(loss) so far as it concerns
the member of the holding
company
a) Not dealt with in the holding
company’s accounts
i) For the financial year
ended March 31, 2010 13,470 26,59,00,884 28,39,24,389 NIL (7,50,950) (1,68,354)
ii) Upto the previous
financial years of the
subsidiary company (37,63,470) 23,98,31,152 106,46,268 (813,26,692) (27,866) (47,19,250)
b) Dealt with in the
holding company’s
accounts
(i) For the financial year
ended March 31, 2010 Nil Nil Nil Nil Nil Nil
(ii) For the previous financial
year of the subsidiary
company since they
become the holding
company’s subsidiaries Nil Nil Nil Nil Nil Nil

For and on behalf of the Board of Directors

Place : New Delhi (R.S. Sharma)


Dated : August 04, 2010 Chairman & Managing Director

34th Annual Report 2009-2010 93


Annex- VI to Directors’ Report
STATISTICAL DATA OF GRIEVANCE CASES
2009-10

S. Particulars Public Grievance Cases Staff Grievances Cases


No.

1. Grievance cases outstanding at the beginning of the year - 3


2. Grievance cases received during the year - 27
3. Grievance cases disposed off during the year - 24
4. Grievance Cases outstanding at the end of the year - 6

For and on behalf of the Board of Directors

Place : New Delhi (R.S. Sharma)


Dated : August 04, 2010 Chairman & Managing Director

94 34th Annual Report 2009-2010


Annex-VII to Directors’ Report

STATICAL INFORMATION ON RESERVATION OF SCs/STs FOR THE YEAR 2009


Representation ofSCs/STs as on 01.01.2010:

Group Empl
oyees on Rol
l SCs %age STs %age
A 13274 1565 11.78 552 4.15
B 4826 723 14.98 321 6.65
C 5998 1055 17.58 437 7.28
D 1734 396 22.83 173 9.97
Total 25832 3739 14.47 1483 5.74
Recruitment ofSCs/STs during the year 2009:

Group TotalRecruitment SCs %age STs %age


A 1051 131 12.46 82 7.80
B - - - - -
C 9 2 22.22 - -
D - - - - -
Total 1060 133 12.54 82 7.73
Promotions ofSCs/STs during the year 2009:

Group Total SCs %age STs %age


A 3083 422 13.68 152 4.93
B 1792 230 12.83 180 10.04
C 2346 453 19.30 136 5.79
D 213 30 14.08 12 5.63
Total 7434 1135 15.26 480 6.45
The following backlog vacancies reserved for SCs/ STs/ OBCs have been filled through special recruitment drive/
advertisement of backlog vacancies along with current vacancies:
SCs :6
STs : 19
OBCs : 54

For and on behalf of the Board of Directors

Place : New Delhi (R.S. Sharma)


Dated : August 04, 2010 Chairman & Managing Director

34th Annual Report 2009-2010 95


Annex- VIII to Directors’ Report
PHYSICALLY CHALLENGED PERSONS
With a view to focus on its role as a socially responsible and socially conscious organization, NTPC has endeavored to
take responsibility for adequate representation of physically challenged persons in its workforce. With this in view, NTPC
launched a massive recruitment drive to make up the shortfall of physically challenged persons. Presently, 458 physically
challenged persons are on rolls of NTPC. Reservation has been provided for PH as per rules/ policy. Some of the other
initiatives taken for the welfare of physically challenged persons by NTPC over the years are as under:
- For individual needs of the VH employees, screen reading software and Brailee shorthand machines made available
by the Projects of NTPC.
- “Sign language”training for the employees in general.
- Changes in the existing building have been/are being made to provide barrier free access to physically challenged.
- Ramps have also been provided for unhampered movement of wheelchair.
- At most of the NTPC Projects, wherever house are located in multi-storied structure, allotment to physically challenged
has been made on the ground floor.
- Special parking enclosure near the ramp at the office entrance as well as PH friendly toilets and lift at CC and
projects.
- Wheel chairs have been provided to employees with orthopaedics disabilities. If required, the assistance of an
attendant has also been sanctioned.
- Wherever required, gates/door of the quarter has been widened.
- At CC procurement of stationery items like files, envelopes are mainly being done from NGOs/agencies like ADI,
MUSKAN, Blind relief Association who are working for physically challenged thereby creating indirect employment.
- Paintings made by disabled persons have also been procured and placed at different locations in the Company
offices.
- Medical camps have been organized in various projects of NTPC for treatment and distribution of aids like artificial
limbs, tricycles, wheelchairs, calipers etc.
- Shops have been allotted in NTPC Township to physically challenged persons so that they may earn their livelihood.
Similarly, PCOs within/outside plant premises are also allotted to physically challenged persons.
- Regular interactive meetings are being organized with physically challenged employees.
- Training needs are being fulfilled as per the individual requirement.
- 5 number of scholarship @ Rs.1500/- per month/per student are given to PH students pursuing MBA/PGDBM
course.
- Petty contracts like book binding, scribbling pad preparation from waste paper, file binding, furniture repair, screen
printing spiral binding, painting contract are also being given to disabled persons.
- Physically challenged (Orthopedically handicapped) employees have been allowed to purchase a three wheeler
vehicle with a hand fitted engine against their normal entitlement (advance for scooter/motorcycle/moped) under
NTPC Conveyance Advance Rules.
- At all projects/offices, Nodal Officers (physically challenged) have been nominated.
- Reimbursement towards low vision aids, dark glasses etc. subject to maximum of Rs.1000/- every year has been
introduced. Similarly, hearing aid;behind the ear model for each ear restricted to Rs.10,000/- or actual cost whichever
is lower have been introduced. It may be replaced every 4 years subject to certificate of condemnation by ENT
Specialist.
- Relaxation in qualifying marks for open recruitment: pass marks only and also 10% relaxation in written test and
interview from the year 2002 onwards.
- The minimum performance level marks for promotions within the cluster is relaxed by 3 marks in case of employees
belonging to SC/ST/Physically Challenged category.
- NTPC has launched special recruitment drive for fulfilling up 18 backlog vacancies for Physically Challenged Persons
in Group A posts and the recruitment process has been completed in July-2010.
For and on behalf of the Board of Directors

Place : New Delhi (R.S. Sharma)


Dated : August 04, 2010 Chairman & Managing Director

96 34th Annual Report 2009-2010


Annex-IX to Directors’ Report
UNGC –Communication on Progress (2009-10)
NTPC expresses its continued support for the Global Compact and its commitment to take action in this regard, as was
communicated by the Chairman & Managing Director, NTPC in his letter dated May 29, 2001 addressed to Secretary
General, United Nations.
NTPC has posted the brief of Global Compact and its commitment to the principles of GC on its website at www.ntpc.
co.in . The principles of GC were communicated to all employees through in – house magazines, internal training
programmes and posters. NTPC, a core member of Global Compact Network (GCN), India, (formerly known as Global
Compact Society) actively participated in the Annual Convention of the Global Compact Network at Mumbai and Asia
Pacific Regional Conclave at New Delhi. NTPC representative contributed as faculty for various training programmes
organized by GCN for Global Compact Member Organizations in Chennai and Delhi.
NTPC is in the process of preparing its “Corporate Sustainability Report”covering Economic, Environmental and Social
aspects with the “triple bottom line”approach based on widely accepted and updated Global Reporting Initiative (GRI)
Guidelines.
Human Rights: Principl
e 1-2
Most of NTPC’ s operating power stations are located in remote rural areas which are socio-economically backward and
deficient in the basic civic amenities. NTPC, as responsible corporate citizen, has been addressing the issue of community
development in the neighbourhood areas of its stations, which had been impacted due to establishment of the project.
While, this has been initially administered as part of Resettlement and Rehabilitation (R&R) effort, NTPC recognized its
social responsibility to continue community and peripheral development works where the same has been closed under
R&R policy. Towards this, NTPC adopted “Corporate Social Responsibility–Community Development (CSR-CD) Policy”in
July’
04. Keeping in view the new Organizational Strategies towards Community Development in line with the emerging
trends and multifarious community needs, the CSR-CD policy of NTPC is being re-visited
Under this policy, during 2009-10, NTPC allocated a fund of Rs.86 million to 20 operating stations for carrying out
comprehensive Community Development work in the area of health, education, drinking water and peripheral
development. In addition, Quality Circles (QCs) are functioning in neighborhood villages of its stations. The NTPC
employees participate in various CD activities through Employee Voluntary Organization for Initiative in Community
Empowerment (EVOICE). 50 Solar Lanterns were provided for Girls’Hostel attached to one of the Kasturba Gandhi Balika
Vidyalay in the vicinity of NTPC Korba Station through TERI under their LaBL campaign.
NTPC representatives associated with Confederation of Indian Industry (CII) as Certified Assessors for the assessment of
CII-ITC Sustainability Award constituted by the CII and actively participated and contributed for establishing CSR Hub at
TISS, Mumbai.
NTPC Foundation, registered in December’ 2004, is engaged in serving and empowering the physically challenged and
economically weaker sections of the society. The Information and Communication Technology (ICT) Centre, set up jointly
by NTPC Foundation and University of Delhi, and similar ICT facilities to the existing blind schools in Lucknow, Ajmer,
Thiruvanathapuram and Mysore are helping a large number of physically challenged students to learn IT Skills and move
along with the mainstream society. More than 800 physically challenged students have got benefited in these centres till
now.
NTPC Foundation is providing grants for setting up of Distributed Generation Projects for preparation of feasibility report,
DPR, Insurance and for meeting funding gap.
Major activities taken up by NTPC in this area are highlighted under the head “Inclusive Growth”and “NTPC Foundation”
under Directors’Report for the Annual Report 2009-10.
Labour Standard: Principl
e 3-6
For addressing the issue of labour standard in comprehensive manner, NTPC has decided to adopt international standards
like SA-8000 and OHSAS-18001.

34th Annual Report 2009-2010 97


During the year 2009-10, accreditation SA-8000 got revalidated for Auraiya, Badarpur, Jhanor-Gandhar and Dadri stations
of NTPC. Revalidation is in process at Faridabad, Kayamkulam, Unchahar and Vindhyachal. The process for accreditation
has been initiated at Kawas station.
Environment: Principl
e 7-9
As a result of pursuing sound environment management systems and practices, NTPC’ s all 20 operating stations have
obtained accreditation for ISO –14001 Certification. Surveillance audit was done through agencies at various stations to
ensure adherence to the ISO requirements. During the year 2009-10, 6 stations viz. Korba, Singrauli, Unchahar, Ramagundam,
Kayamkulam and NCPP-Dadri Stations have been recertified under ISO –14001
Steps have been taken up by dedicated groups for training of NTPC Employees for strengthening Environment Management
at Stations, Regional Headquarters and Corporate Centre. Following training programmes were organized in the area of
environment during the year:
“Strengthening Environment Management”for Executives working in Environment Management Group/ Function, “Insight
into the Environmental Issues”exclusively for Senior Officials at the level of DGM & Above, and “Environmental Concerns”
for Non-EMG Executives.
Major activities taken up by NTPC in the area of Environment are highlighted under the head “Environment Management”
under Directors’Report for the Annual Report 2009-10.
Anti-corruption: Principl
e10
The Company has a Vigilance Department headed by Chief Vigilance Officer who is a nominee of the Central Vigilance
Commission. The Vigilance Department Consisting of Four Units, namely Corporate Vigilance Cell, Departmental Proceeding
Cell (DPC), MIS Cell, Technical Cell (TC). These units deal with various facets of Vigilance Mechanism Exclusive and
independent functioning of these Units ensure transparency, objectivity and quality in vigilance functioning. The Vigilance
Department submits its reports to Competent Authority including the Board of Directors. The CVO also reports to the
Central Vigilance Commission as per their norms.
Major activities taken up by NTPC in the area regarding Implementation of Integrity Pact, Implementation of Fraud Prevention
Policy, Preventive Vigilance Workshops and Vigilance Awareness Week etc. are highlighted under the head “Vigilance”
under Directors’Report for the Annual Report 2009-10.

For and on behalf of the Board of Directors

Place : New Delhi (R.S. Sharma)


Dated : August 04, 2010 Chairman & Managing Director

98 34th Annual Report 2009-2010


Annex-X to Directors’ Report
CONTENTS OF PRESIDENTIAL DIRECTIVES
1. Induction ofsupercriticaltechnol
ogy through bul k ordering of660MW generating units for CentralPubl
ic
Sector Undertakings (CPSUs) under the Administrative controlofMinistryofPower
Vide Presidential Directive No.8/3/2002-Th-II (Vol.-IV) dated 4th September, 2009 read with letter of even No.
dated 7th October, 2009, the Government of India has directed NTPC for induction of supercritical technology
through bulk ordering of 660MW generating units by NTPC Limited for itself and on behalf of its JV Companies, and
on behalf of DVC as per details given in the Appendix-I enclosed with the letter. Government of India has also
approved that the liquidated damages be made applicable to all the vendors and the same may be followed
strictly. A detailed road map for implementation of the same in this regard was to be provided to the Ministry so
that action is completed within 45 days from the date of issue of the letter. Government of India has further directed
that the whole procedure has to be completed in accordance with the approval of Government of India as per
detail given in Annexure to the letter and NTPC has to evolve a monitoring mechanism for reviewing the progress in
this regard and also depute a dedicated team for implementation of the same.
Approval/ guidelines for bulk tendering of 11 units of 660 MW units of SG (Steam Generator) and STG (Steam
Turbine Generator) packages were received from MOP through their letter no. 8/3/2002-Th.II (Vol.IV) dated
04.09.2009 as Presidential Directive.
As per directive, Invitation of Bids (IFB) had to be completed within 45 days of its issuance. In compliance of the
aforesaid directive, the IFB was published on 16.11.2009 (within 45 days) for both SG and STG packages. Further,
the provisions specified in Presidential Directive were adequately taken care while framing Qualification Requirements
and finalizing the bidding documents. The bidding documents were on sale from 21.10.2009 to 23.12.2009.
Subsequently, Stage-I (Techno-Commercial) bids have been opened on 12.02.2010 for both SG and STG packages.
As for SG Package only one valid bid was received, the NIT was annulled and fresh bids have been invited. For STG
Package, the bids are under evaluation.
2. Winding up ofPipavav Power Devel opment Company Limited (PPDCL) through striking offthe name of
PPDCL under Section 560 ofthe Companies Act, 1956 subject to finalsettl
ement ofcl aims pending with
Gujarat Power Corporation Limited/Government ofGuj
arat
Vide Presidential Directive No.5/5/2004-Th.II dated 3.7.2009, Government of India has conveyed the approval of
Government to permit NTPC Limited for winding up of Pipavav Power Development Company Limited pending final
settlement of claims with Gujart Power Corporation Limited/Government of Gujarat.
Vide Presidential Directive No.5/5/2004-Th.II dated 15th April, 2010, the Government of India has conveyed the
approval of Government to permit NTPC Limited for winding up of the Pipavav Power Development Company
Limited through striking off the name of PPDCL under Section 560 of the Companies Act, 1956 subject to final
settlement of all claims pending with Gujarat Power Corporation Limited/Government of Gujarat and the completing
all formalities under the statues.
After decision of disassociation of NTPC from Pipavav Project, Rs.131 million was received towards reimbursement
of cost of land and other expenditure incurred by NTPC Limited for Pipavav Project including interest thereon. On
taking up the matter further payment of Rs.20 million has been made by GPCL as full and final settlement of claims
of NTPC.
After receipt of approval of Government of India a necessary applications/declarations have been filed with the
Registrar of Companies, Delhi & Haryana on 29.4.2010 for striking off the name of the company from the Register of
the Companies maintained by the Registrar of Companies.
3. Contract relating to Main Pl
ant Package for Barh Super ThermalPower Proj
ect Stage-I (3x660MW) awarded
on M/s. Technopromexport, RussiabyNTPC Ltd.
NTPC had sought permission from Ministry of Power for termination of Main Plant Package Part-A (Steam Generator &
Auxiliaries) Contract for Barh Super Thermal Power Project Stage-I (3x660MW) awarded on M/s. Technopromexport,

34th Annual Report 2009-2010 99


Russia (TPE). However, Ministry of Power vide letter No.5/9/2010-th.II dated 28th May, 2010 has directed NTPC to
invite reference to the record of discussions between MOP/NTPC and TPE on 12.03.2010 held in the Ministry of
Power and to NTPC’ s letter dated 17.04.2010 containing the anticipated cost implications of continuing/discontinuing
with the above contract. Ministry of Power has further directed that the matter was taken to the Cabinet Committee
on Infrastructure (CCI). CCI in its meeting dated 19.5.2010 has decided that “NTPC may carry on with the contract
with TPE in Barh Stage-I notwithstanding CBI’ s advisory to NTPC for civil action against TPE as per tender conditions
and the contract. However, CBI is to continue with the investigation of corruption/criminal part of the case.”
Accordingly, NTPC has been asked to take all necessary actions for early completion of the project in view of the
CCI’ s decision as above.
In view of the above directive of the Ministry of Power, it has been decided to go ahead with the contract with TPE
and discussions are being held with them for execution of work and settlement of claims.
The exact financial implication of the above directive can not worked out at this stage. However, anticipated extra
financial implication works out to approx. Rs.1190 crores.

For and on behalf of the Board of Directors

Place : New Delhi (R.S. Sharma)


Dated : August 04, 2010 Chairman & Managing Director

100 34th Annual Report 2009-2010


Annex-XI to Directors’ Report

The quantityofashproduced, ashutil


ized and percentage ofsuchutil
ization during2009-10from NTPC Stations
is as under:

Sl
. No. Stations Ash Produced Ash Util
ization % Util
ization
Lakh MTs Lakh MTs %
1 Badarpur 12.53 10.66 85.11
2 Dadri 17.39 15.55 89.41
3 Singrauli 35.84 26.16 73.00
4 Rihand 28.56 21.00 73.52
5 Unchahar 22.09 20.48 92.73
6 Tanda 9.70 7.08 73.01
7 Korba 52.31 38.79 74.14
8 Vindhyachal 50.17 37.31 74.36
9 Sipat 21.43 0.21 0.96
10 Ramagundam 42.80 31.34 73.22
11 Simhadri 22.18 10.00 45.09
12 Farakka 28.47 23.62 82.99
13 Kahalgaon 30.31 6.99 23.05
14 Talcher-Thermal 11.43 11.43 100.00
15 Talcher-Kaniha 77.00 15.46 20.08
Total 462.19 276.08 59.73

For and on behalf of the Board of Directors

Place : New Delhi (R.S. Sharma)


Dated : August 04, 2010 Chairman & Managing Director

34th Annual Report 2009-2010 101

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